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Research Details

The Theory of Capital Structure, Journal of Finance

Abstract

This paper surveys capital structure theories based on agency costs, asymmetric information, product/input market interactions, and corporate control considerations (but excluding tax-based theories). For each type of model, a brief overview of the papers surveyed and their relation to each other is provided. The central papers are described in some detail, and their results are summarized and followed by a discussion of related extensions. Each section concludes with a summary of the main implications of the models surveyed in the section. Finally, these results are collected and compared to the available evidence. Suggestions for future research are provided.

Type

Article

Author(s)

Milton Harris, Artur Raviv

Date Published

1991

Citations

Harris, Milton, and Artur Raviv. 1991. The Theory of Capital Structure. Journal of Finance. 46(1): 297-356.

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